Help needed on survey result

Amandamo

Hi everyone
I may be misunderstanding this but am a tad confused about what I see as conflicting information.
I am currently looking to buy a new home and have found a property that seems suitable.
The problem is the retention that has been set on the home buyers survey - I live in Scotland btw - there are structural problems that have been noted and the survey report has estimated that it will cost around £35000 to fix - the valuation of the property is £325000 (after work is completed) and the price of the property has just dropped to £260000, it was £290000 which would have accounted for the work required to be done. The home buyers report has stated that the current value is £0 and a put a retainer of £325000 for lending.
Does this seem right? I would have assumed that the retainer would have been £35000.
The level 3 repairs for structural work all pertain to garden retaining walls that require to be demolished and rebuilt and a summerhouse. The house itself has one level 3 , a crack below a window that says is due to settling and only requires to be sealed -according to the survey.
These figures don’t make sense to me !!!128533;, help would be greatly appreciated !!!129300;!

ex_surveyor

I believe the Home Report in Scotland is often accepted by lenders as the basis for making a mortgage offer (although I have no direct experience of this survey in Scotland). In that case, where there are significant condition rating 3 structural problems the lender (depending on their lending criteria and policy) will usually make a full retention of any advance until the works have been completed, although from a purchaser's viewpoint the property clearly does have a current market value which will be somewhat below the completed cost less the cost of all repairs (to 'reward' the purchaser for the hassle of sorting out and financing the cost in the meantime).

Amandamo

Thanks for the reply - you are right that lenders use the report to decide on how much you can borrow, which means that it is not looking good unless we have a lot of spare cash ! I think we will just need to go to the bank and see what they say , we already have a mortgage in principal which would have been enough to have put in an offer but with the level 3 issues I think they will not be willing to lend on it.